Biden officials issue permit for Perpetua’s Idaho antimony and gold mine By Reuters

By Ernest Scheider

(Reuters) – The Biden administration gave final approval on Friday to Perpetua Resources’ Idaho antimony and gold project, which aims to boost U.S. production of the key mineral at the center of a widening trade war between Washington and Beijing.

The mine, backed by billionaire investor John Paulson, was approved after Beijing last month blocked US exports of antimony, a metal used in weapons, solar panels, ignition and other products for which there are no current US sources.

The US Forest Service has released the final record of decision on Perpetua’s Stibnite project, essentially the mine permit, after an eight-year review process, according to documents posted on the agency’s website.

Shares in the Boise, Idaho-based company jumped 9.1% after Reuters reported the permit decision earlier on Friday.

Perpetua’s mine will supply more than 35% of America’s annual antimony needs when it opens by 2028 and will produce 450,000 ounces of gold each year, a dual revenue stream expected to keep the project afloat financially regardless of any moves Beijing may make to the markets. to influence.

For example, Jervis Global, the owner of an Idaho mine that produces only cobalt, filed for bankruptcy Thursday after Chinese miners aggressively boosted production of the metal in a bid to gain market share.

In its 154-page report, the Forest Service said its Perpetua decision was based on a detailed review of environmental data, discussions with indigenous groups and consultations with other federal agencies.

“I have considered the extent to which (the mine’s) environmental design features, monitoring and mitigation measures will, if possible, minimize adverse environmental impacts on (federal lands),” Forest Service officer Matthew Davis said in the report.

Perpetua, which has changed its mine design three times in response to critics, said it believes it can make the mine (about 138 miles (222 km) north of Boise) “the best it can be.”

“Every detail of this project has been examined with a fine-toothed comb,” said John Cherry, CEO of Perpetua.

Perpetua must obtain a wetlands permit from the U.S. Army Corps of Engineers, though the Forest Service said its decision was made in consultation with that agency, implying a smooth review process.

FINANCES

The Stibnite project was projected to be worth $1.3 billion in 2020, a figure expected to rise due to post-pandemic inflation.The site has estimated reserves of 148 million pounds of antimony and 6 million ounces of gold.

The Pentagon has provided nearly $60 million in permit funding for the project, which involves cleaning up and expanding the site, which was contaminated by World War II-era mining.

Last April, Perpetua received a letter of interest from the US Export-Import Bank, the government’s export credit agency, for a loan of up to $1.8 billion to finance the Stibnite project.

The project has not won the support of Idaho’s Nez Perce tribe, which is concerned it could affect the state’s salmon population.

In a statement to Reuters, the Nez Perce tribe said it was still reviewing the final decision, though “not optimistically,” adding that it believed the Forest Service “rushed into approval of Perpetua Resource’s mine proposal without doing the required due diligence.” to perform”.